AI in Warehousing Market Size

AI in Warehousing Market size was USD 10.6 billion in 2024 and is estimated to reach USD 242.2 billion by the end of 2037, expanding at a CAGR of 27.2% during the forecast period, i.e., 2025-2037. In 2025, the industry size of AI in warehousing is estimated at USD 13.5 billion.

The gradual digital shift is primarily fuelling the adoption of artificial intelligence (AI) and other digital technologies such as machine learning, big data analytics, cloud computing, edge computing, and the Internet of Things in warehousing applications. Warehouse operators across the globe are widely adopting AI to streamline workflow, reduce operational costs, and increase automation. AI also reduces the need for labor as it increases the working speed level, mitigates errors, maximizes resource utilization, boosts order processing, and improves inventory management by effectively coordinating with logistics.

Recent studies by Research Nester estimate that around 37% of logistics and transportation companies are employing AI to drive more value from rules-based automation. Over 51% of warehouse robotics and 47% of warehouse drones are being actively used to increase operational efficiency. Thus, to move from process automation to smarter automation many companies are investing in AI technologies.